Caltech

Your 2006-2007 Financial Aid Award
The California Institute of Technology Financial Aid Office is pleased to enclose your Undergraduate Financial Aid Offer for the 2006-2007 academic year. This guide is designed to help you understand your financial aid award, as well as your rights and responsibilities as a financial aid recipient. We suggest you keep it handy for reference throughout the year. Please read your award letter and this publication carefully; then follow the steps listed in the checklist on the back cover. To accept your financial aid, you must sign and return your financial aid award letter to the Financial Aid Office, Caltech, Mail Code 110-87, Pasadena, California 91125. If, after reading this guide, you have any questions, please call us at (626) 395-6280.

UndersTandinG yoUr financial aid award
Glossary of Terms:
Your college expenses represent an estimate of the costs for the academic year. These expenses include tuition, fees, room and board. They also include an estimate of other expenses, such as books, supplies, and miscellaneous personal costs. Unless otherwise indicated, your college expenses have been calculated to cover the three-term, nine-month academic year. We recognize that some expenses may differ from student to student. To assure fair distribution of financial aid resources, however, we have used standard estimates (derived from national and state sources) unless special circumstances (such as disability-related expenses), documented in writing, justify including costs different from the estimates. A travel allowance for domestic students, is added to your college expenses. Caltech does not include a travel allowance for students whose residence is outside the U.S., Canada, Mexico, or Guam. Your resources (otherwise referred to as “family contribution”) include parents’ contribution, student’s contribution from income, student’s contribution from assets, and other resources (such as scholarships from outside of Caltech). Parents’ Contribution is an amount that represents the portion of your college expenses your parents are expected to contribute. The financial aid system assumes that parents are responsible for contributing to their children’s educational expenses, to the extent that they are able. To assess the difference among families, we use generally-accepted formulas that take into account the information reported on the Free Application for Federal Student Aid (FAFSA) and the College Scholarship Service (CSS) Financial Aid PROFILE Form, or the International Student Financial Aid Application. The “parental contribution” (PC) listed on the enclosed award letter is our estimate of your parents’ ability to contribute toward college expenses. We expect comparable amounts from families like yours, and 2 proportional amounts from families whose financial circumstances appear stronger or weaker than yours. The “parental contribution” is not a prediction of how much cash your family has on hand, or a value judgment about how much your family “ought to” be able to contribute from its current income, or a measure of its liquidity. Rather, it is our best estimate of your family’s capacity, over time, to absorb the costs of education. We estimate how much your family can be expected to contribute (relative to other families), but make no particular assumptions about how your family will finance that contribution. In fact, your family has choices about how to do that including borrowing, making payments over a period of time, and utilizing savings and current earnings. Student’s Contribution from Income represents the amount you are expected to contribute from employment and other resources toward your college expenses. Your “Student Contribution” is calculated from your 2005 calendar year non-Federal Work-Study (FWS) income. This is designed to be an accurate prediction of the non-FWS income you will have available during the 2006-2007 academic year, whether it is earned during the summer of 2006 or during the 2006-2007 academic year, or both. PLEASE NOTE: Begining with the 2006-2007 academic year, you will be expected to save a minimum of $1,500 from your summer earnings to contribute toward your academic expenses. If this expected contribution is not a realistic expectation, please notify the Financial Aid Office and submit a written request for a revision to adjust your expected summer savings contribution. Any adjustments to your contribution will result in an increase in your academic year work-study allocation or your student loan. Student’s Contribution from Assets is the amount you are expected to contribute to your college costs from your total assets. Students are expected to contribute 35 percent of their cash, savings, trusts, and investments reported on the financial aid application.

Other Resources may include a variety of financial assistance. Students who fail to report resources may find themselves in an overaward situation and may have to repay funds. Overawards can usually be avoided if you report changes in your financial circumstances and/or resources, as soon as you are aware of them. (See “Your Rights and Responsibilities” section.) Outside Scholarships are also considered to be a resource available to you during the academic year. Caltech’s policy is to use the amount of your outside scholarship award to replace the self-help (work and/or loan) portion of your financial aid award. Loan funds are replaced first, and then work will be adjusted. Only if the amount of your outside award exceeds the selfhelp portion, will the additional amount replace Caltech grant eligibility. Your financial aid eligibility is the difference between your college expenses and your resources. Your financial aid award reflects the types and amount of aid you are being offered. Your financial aid award will usually equal your financial need.

Paychecks (for actual hours worked) from Federal Work Study and CIT Work-Study earnings are disbursed to you at the work site as earned, by check, through the biweekly Caltech payroll system. Outside scholarships are disbursed according to the sponsor’s specifications. If the funds are sent to the Financial Aid Office, they will be credited to your student account. Note: For information on Federal Direct PLUS loan disbursements, please see the appropriate section in this guide.

The family conTribUTion
The Bursar’s Office at Caltech will send you a monthly statement of the amount due the Institute. Tuition, fees, as well as room and board costs, if living in Caltech housing, will appear as charges on your student account statement. Grant and loan awards will appear as credits on the statement. Approximately one-third of the annual charges and credits will appear on the statement each term. Because Caltech does not bill for costs associated with personal expenses and travel, those costs will not appear on the statement. However, these costs are included on your financial aid award letter. Many students will need some of their family contribution for these “associated” costs, as well as for the amount due on the student account statement. Therefore, the family contribution reflected on the award letter might not match the amount due on the student account statement. Families should plan to provide the appropriate amounts needed to cover any remaining amounts due the Institute, in addition to the amounts needed to meet personal costs.

yoUr financial aid award
disbUrsemenT of fUnds
Financial aid funds are disbursed depending on the type of aid and its source: Caltech grants, scholarships and merit awards, as well as state and federal grants, are credited to your student account at the beginning of each academic term. Federal Perkins Loans, Federal Direct Stafford Loans, and Caltech Loans are also credited each term to your student account.

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Federal Perkins and Caltech loans require that you complete a Borrower Data Sheet and sign a promissory note. These forms are available at Registration. Federal Perkins Loan borrowers must read and sign an Entrance Interview form. 3

yoUr financial aid PackaGe
If your financial aid exceeds your billed costs, you will have a “credit balance” on your student account statement. You may withdraw this money or a check can be issued to you after Registration. This money may then be used to pay your personal costs. If a credit balance exists on your student account, you should contact the Bursar’s Office to request the excess funds. Since students are often eligible for several different types of aid from various sources, Caltech offers a financial aid “package.” A financial aid package usually consists of one or a combination of the following fund sources: grants, scholarships, loans, and on-campus employment. These funds are made available from the federal government, Caltech, or the State of California. An explanation of all fund sources awarded is provided here. As you review your financial aid award letter, please refer to the following descriptions.

Since many donors are lifelong friends of the Institute and enjoy hearing directly from students about life at Caltech today, you will be asked to write a thank-you letter to one or more of these benefactors. Additionally, you may be asked to attend a function to meet your scholarship donor. Named scholarships are given in lieu of Caltech Grants. The Freshman Admission Committee selects admitted freshmen for a limited number of merit-based awards. No separate application is required. Selected students will be notified by the Admissions Office. Additionally, the Faculty Committee on Scholarships and Financial Aid recommends a number of Caltech’s most academically-talented returning students to receive the Caltech Upper Class Merit Award for their sophomore, junior, and/or senior year. Applications are available each spring in the Financial Aid Office. Financial need is not considered. The Merit Award honor is recorded on academic transcripts and listed in the commencement program when the scholar graduates. In addition, as outside scholarships and merit awards become available throughout the year, the competitions are publicized on our website at www.finaid.caltech.edu and advertised in the campus newspaper, the California Tech. Federal and State Grants Federal Pell Grants are funds awarded from the federal government. If you appear to be eligible for this grant, the Federal Pell Grant on your award letter will be labeled “Estimated.” When your Federal Pell Grant is confirmed and ready to be credited to your student account, it will be labeled “Actual.” Federal Supplemental Educational Opportunity Grants (FSEOG) are awarded from federal funds assigned to the Institute to provide aid to students with exceptional financial need (defined as those with the lowest Federal expected family contribution at the Institute) and who qualify to receive a Federal Pell Grant. Cal Grants are awarded by the California Student Aid Commission (CSAC) to California residents. Cal Grants are renewable up to four years, as long as the student 4

GranTs
Caltech Grants and Scholarships Caltech Grants are gifts awarded from an institutional fund or endowment specifically established for the purpose of assisting undergraduates. The amount of the award depends entirely on your demonstrated financial need, and is subject to available funds. Caltech Grants are renewable based on demonstrated financial need which is assessed annually when students apply for financial aid. Scholarships are awarded on a competitive basis and, like grants, do not have to be repaid. Awards are based on academic ability, achievement, and promise, as well as extracurricular activities and interests. While most are “need based,” some are “merit based” only. “Named Scholarships” are awarded to undergraduates from funds given by individuals or organizations for scholarship purposes, and are “named” by or for the donor. If you meet the specifications of the donor, you are automatically considered for a named scholarship.

continues to demonstrate financial need and to make satisfactory academic progress. Other states such as Pennsylvania, Vermont, and Rhode Island may offer grant assistance to their residents who plan to attend Caltech. Students are encouraged to explore their potential eligibility for state grants by contacting their respective state postsecondary agency.

The maximum amount of Federal Work-Study wages that students may earn is determined by financial need. Federal Work-Study employees are paid at least the federal minimum wage rate. Wage rates are based on the responsibility of the position as well as student job skills and previous work experience. Summer Federal Work-Study and Summer CIT Work-Study Programs enable returning Caltech undergraduates who demonstrate financial need to earn a portion of their self-help in advance of the school year. A separate application, available in the Financial Aid Office, is required to apply for summer work-study, and must be submitted by June 1. The CIT Work-Study Program is funded by the Institute to provide part-time employment for international students who have demonstrated financial need. This program is limited to work on campus or at Caltech’s Jet Propulsion Laboratory. The program is designed to parallel the Federal Work-Study program and the same guidelines apply to its administration. Student employment is generally available to all students whether or not they apply for financial aid. The Caltech Career Development Center is happy to assist you in finding a part-time job. Loans Loans are an invaluable resource for many students and their families to finance a college education. Loans allow you to postpone paying a portion of your educational costs until completing your education or leaving school. Loan repayment generally extends up to 10 years after graduation or leaving school. Graduating in debt is a fairly common experience for today’s students. Of the 217 seniors graduating from Caltech in Spring 2005, 97 of them graduated with educational loans. Their average indebtedness was significantly lower than the national average for students attending independent colleges. Acceptance of any loan carries a serious obligation to repay and failure to meet this obligation affects the availability of loans to future students. Before you accept 5

self-helP: emPloymenT and loans
A self-help award is a combination of employment and loan during the summer and academic year. The amount of the self-help award is established yearly by the Institute, but you may choose how much of your self-help award you wish to earn and how much you wish to borrow, as funds permit. By completing a request form in the Financial Aid Office, you may change your Federal Perkins Loan to Federal WorkStudy and vice versa at any time during the academic year until May 1. Employment Work programs offer students a double incentive — earning money to help meet college expenses plus gaining valuable job experience. In the competitive job market, employers look for applicants who have work experience along with their education. Federal Work-Study is a federally-funded program that provides subsidized part-time employment for students with demonstrated financial need. Freshmen must receive permission from the Dean of Students to work. Thus, their Federal Work-Study award is intended to be earned during the second and third terms only. You may choose to earn up to the full amount of the self-help portion of your financial aid package in Federal Work-Study without affecting your grant eligibility. The loan portion of your financial aid package will be adjusted accordingly. You can locate a job by contacting the Career Development Center, the Caltech Y, and by checking the student newspaper. Federal Work-Study jobs are available on campus, at the Jet Propulsion Laboratory, and through the Caltech Y (community service opportunities). Caltech continues to place an increased emphasis on placing Federal Work-Study students in community service jobs.

loans for financing part of your education, you should carefully consider the total amount and the repayment requirement that you will be responsible for when you complete your education. Remember: You may be simultaneously repaying the minimum monthly or quarterly payments for each type of loan you receive. For example, you may have to repay a Federal Perkins Loan, a Caltech Loan, and a Federal Direct Loan simultaneously. If you have any questions about your loan obligations, contact the Financial Aid Office. Loan descriptions and terms are briefly described below as well as in the loan promissory notes you will be required to sign. Be sure you read and understand all rights and responsibilities before accepting a loan. Federal Perkins Loans are awarded to students with demonstrated financial need. Funds are obtained from the federal government and from former Caltech students who have repaid or are in the process of repaying their loans. No interest is charged on the loan while you maintain at least half-time enrollment. Repayment begins nine months after you leave school or drop below half-time status. Interest is then charged at a rate of 5 percent per year on the unpaid balance. Federal Perkins Loans are limited to $4,000 annually during undergraduate study, for a total of $20,000 for all years of undergraduate study, and a maximum of $40,000 for the entire undergraduate and graduate career. Students may be allowed up to ten years to repay loans based on the amount they have borrowed. A typical repayment chart is shown on our website at www.finaid.caltech.edu/resources/loans.html. Information concerning deferment, postponement, and cancellation will be provided on your loan promissory note and in a disclosure statement given to you prior to the disbursement of the loan. Caltech and Institute Loans are used to supplement the Institute’s Federal Perkins Loan funds. No interest is charged and no repayment of principal is required while you maintain a continuous course of study as a Caltech undergraduate. Repayment begins nine months after you leave school or drop below half-time status. Interest is then charged at a rate of 5 percent per year on

the unpaid balance of your Caltech Loan until the loan has been repaid in full. Institute Loans are interest-free. More specific information is provided on the promissory note and in a disclosure statement given to students prior to disbursement of the loan. No disbursement of the Federal Perkins Loan, Federal Direct Stafford Loan or the Caltech/Institute Loan funds will be credited to your student account until you sign a loan promissory note and disclosure statement with the Bursar’s Office. Emergency Loans may be available to students regardless of their eligibility for financial aid. The Hoover Loan Fund enables students to borrow small sums of money to cover unforeseen emergencies. These loans are usually payable within the same academic year and are administered by the Dean of Students on a case-by-case basis. Additional information and applications may be obtained from the Dean of Students Office. The Caltech Y also has a no-interest, 30-day emergency loan program. Maximum loans are $50. For more information on this loan option, contact the Caltech Y. The William D. Ford Federal Direct Loan Program is an opportunity for students to borrow money from the federal government to help pay for a Caltech education. In this program, the U.S. Department of Education makes loans, through Caltech, directly to students. Caltech will use your Direct Loan to pay your tuition and fees, as well as room and board charges, and will give you any remaining money for living expenses. Repayment is made directly to the federal government. Direct Loans include: 1. The Federal Direct Stafford Loan Program; 2. The Federal Direct Unsubsidized Stafford Loan Program; 3. The Federal Direct PLUS Loan Program; and 4. The Federal Direct Consolidation Loan Program.

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samPle financial aid award leTTer
Please return your signed award letter to the Financial Aid Office as soon as possible. Your aid will not be credited to your student account until your signed award letter has been received by us. Aid will be credited no earlier than 10 days prior to the beginning of each term. These titles represent the type of award being offered on this award letter: An award marked “Conditional” indicates we have not yet received all the documents necessary to finalize your award. Please refer to the enclosed notice for details. Once we have received these documents, your award will be reviewed and adjusted as necessary. A “Conditional” award cannot be credited to your student account. An award marked “Official” indicates we have received all documents necessary to finalize your award.

These are the figures used to calculate your college expenses.

Accept or decline each portion of the award listed by checking the appropriate box(es).

Use this section to report other financial assistance (such as outside scholarships and VA benefits) you are or will be receiving this academic year.

I acknowledge that I have received and read the brochure, “Understandin information regarding my dependency status, number of family members, financial aid for the academic period indicated on this offer letter, other than in writing to the Financial Aid Office any changes in my dependency status that additional funds from any other source may result in reduction of my aw granted. I accept responsibility for repayment of loans. I have accurately l indicated on this form. I also understand that my financial aid is only for th by application. I further understand that receipt of aid is contingent upon m offer may be revised any time subject to availability of funds and governm default on any loan, or have made satisfactory arrangements to repay any IV programs, at any institution. Statement of Educational Purpose: I will use program only for expenses related to my study at California Institute of Tec grant, or scholarship funds toward the payment of tuition, fees and other c tuition, fees and other charges to Caltech will be paid in a timely manner an that I have the right to rescind this request (in writing) and receive the pro scholarship funds which exceed the cost of tuition, fees, books and supplie

ACCEPTA

This is the identification section of your award letter. Please review it carefully. If there is an error, please correct the copy of the Financial Aid Offer you are returning.

These are the Resources you and your family are expected to contribute toward your Expenses.

This figure is the amount of aid for which you are eligible. It is the difference between your total Resources and total Expenses.

These are the types of aid you are being offered.

This figure is the total amount of aid we are offering.

ng Your Financial Aid Award Letter.” I certify that, as of the date I sign this statement, , and number of family members attending college has not changed since I applied for n changes caused by a change in marital status. I understand that I must report promptly s, household members, financial, residential, marital, or academic status. I understand wards or require repayment of aid received during the academic period for which it was listed below all additional financial resources I will receive during the academic period he academic period indicated and that it must be renewed for future academic periods my maintaining satisfactory academic progress as defined in the Caltech Catalog. This ment appropriations. I certify that I do not owe a refund on any grant or loan, am not in y defaulted loan, and have not borrowed in excess of the loan limits under Federal Title e all funds I receive under a federally or institutionally assisted loan, grant or work-study chnology. I authorize Caltech to apply any federal, state, or institutionally awarded loan, charges billed by Caltech. I make this request voluntarily in order to be assured that my nd that an accounting of these funds is available to me at any time. I further understand oceeds at any time without penalty. Finally, I understand that my receipt of any grant or es may have potential federal and/or tax consequences.

ANCE AGREEMENT

If applicable, this is the amount of your Summer Federal Work-Study or Summer Caltech Work Study Program Award. This amount does not impact the amount of your academic year award.

The Federal Direct Stafford Loans (subsidized and unsubsidized) are available to both undergraduate and graduate students. The federal government “subsidizes” a loan by paying the interest while the student is in school, during the grace period, and during periods of deferment. For an unsubsidized loan, the government does not provide the subsidy; therefore, interest on the loan accrues during those periods. The calculated family contribution is taken into consideration when determining a student’s eligibility for a subsidized loan. To determine eligibility for an unsubsidized loan, the family contribution is not considered. Other than these two differences, the provisions of the Federal Direct Stafford Loan Program apply to both subsidized and unsubsidized loans (i.e., loan limits, deferment provisions, etc.). Before Caltech can determine loan eligibility, a determination of the student’s eligibility for a Federal Pell Grant must be made. In order to make this determination, the applicant must complete a Free Application for Federal Student Aid (FAFSA). Subsidized Federal Direct Stafford Loans may not be used to substitute for the federally calculated expected family contribution; however, Federal Direct Unsubsidized Stafford Loans may be used in this capacity. Before a student can apply for a Federal Direct Unsubsidized Stafford Loan, eligibility for a subsidized loan will be determined. To reiterate, Federal Direct Unsubsidized Stafford Loan borrowers are not required to demonstrate need in order to be eligible. However, if the student is eligible for a Subsidized Federal Direct Stafford Loan, he or she will be awarded that loan first, and this award will be taken into consideration when determining eligibility for the Federal Direct Unsubsidized Stafford Loan. The amount borrowed under the subsidized and unsubsidized loans combined may not exceed the annual/aggregate loan limits, or the total cost of education.

Note: The loan amounts listed above cannot exceed the cost of your education minus other financial aid you receive. The aggregate loan limit for combined Subsidized and Unsubsidized Direct Stafford loans is $23,000 for dependent undergraduates, $46,000 for independent undergraduates, and $138,500 for graduate and professional students (including Stafford amounts borrowed as an undergraduate). All loans must be disbursed in at least two installments. All first-time borrowers must participate in Entrance Counseling via the web www.ed.gov/directloan/. Further, loan disbursements for first-time, first-year undergraduate borrowers may not be released to the student until he/she has been enrolled in his/her program of study for at least thirty days. The maximum interest rate for new loans is 8.25 percent. The actual rate is variable, and is determined according to a formula linked to the 91-day Treasury Bill rate. For the 2006-2007 academic year, the rate will be set by July 1. To offset the federal government’s cost of the program, the borrower must pay an up-front origination fee of up to 3% of the principal amount of the loan.

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Federal Direct PLUS (Parent) Loan Program Under the Federal Direct PLUS Program, parents of dependent undergraduate students may borrow up to the difference between the cost of attendance and all other financial aid, for that student. Federal Direct PLUS loans are available to parent borrowers who have “no adverse credit history,” as determined by the Secretary of Education. Federal Direct PLUS loans may be used to replace the expected family contribution. There is no cumulative maximum limit that can be borrowed under the Federal Direct PLUS program. Federal Direct PLUS loan funds are credited to the student’s account and must be disbursed in at least two installments. Interest rates on Federal Direct PLUS loans are variable, currently linked to 91-day Treasury Bill rates, but may not exceed 9%. The interest rate is set by July 1, for the following academic year. There is no federal interest subsidy on Federal Direct PLUS Loans, and, the government is authorized to charge the borrower an up-front origination fee of up to 4% to offset the Federal government’s cost of the program. Unless the parent borrower qualifies for one of the deferments under the Federal Direct Stafford Loan Program, repayment of principal and interest must begin 60 days after the loan is fully disbursed. Parent borrowers who qualify for deferment may pay interest only, beginning 60 days after disbursement, or interest will be capitalized (i.e., deferred and added to the loan principal). Applications for Federal Direct PLUS loans are available from the Caltech Financial Aid Office. Applications must be returned to the Financial Aid Office for eligibility certification and processing. Repayment Plans Under the Direct Loan program, student borrowers have four types of repayment plans available: 1. The Standard Repayment Plan: 10 years or minimum $50 payments. 2. The Extended Repayment Plan: 12 years or minimum $50 payments.

3. The Graduated Repayment Plan: minimum $25 payments, based on the assumption that wages will increase over time. 4. The Income Contingent Repayment Plan: based on student’s ability to pay and can extend to 25 years. The longer the repayment period, the more the loan will cost. However, the plans vary to meet the needs of different borrowers and to help prevent default. If you do not choose a repayment plan, you will automatically be assigned the Standard Repayment Plan. More detailed information will be provided when you graduate or leave school. If you are interested in more extensive information now, it may be found at www.finaid.caltech.edu/resources/loans.html or contact our office and we will mail you information. Remember: You or your parents can prepay all or part of your student or parent loan at any time without a prepayment penalty. The sooner you pay off your loan(s), the less interest you will pay. Loan Consolidation If you have several Federal student loans, it may be to your advantage to consolidate your loans into a single Direct Consolidation Loan. Consolidation means making only one monthly payment to cover all of your Federal loans. As with loan repayment, more information will be provided when you graduate or leave school. More information on loan consolidation is available on the internet at www.finaid.caltech.edu/resources/loans.html or at www.loanconsolidation.ed.gov/ or contact the Bursar’s Office and information will be mailed to you.

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Loan Deferments Once you are no longer enrolled at least half-time in college and a six-month grace period has ended, loan repayment for Federal Direct Stafford Loans may be deferred:

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During any period in which you are pursuing at least a half-time course of study as determined by the institution; During any period in which you are pursuing a course of study under an approved graduate fellowship program or rehabilitation training program for disabled individuals; For up to 3 years during periods in which you are actively seeking but unable to find full-time employment; For up to 3 years for any reason, which Caltech determines, has caused or will cause you to have an economic hardship.

The Ombudsman resolves disputes from a neutral, independent viewpoint. The SFA Ombudsman will informally conduct impartial fact-finding about borrower complaints. The Office will recommend solutions, but they will not have the authority to reverse decisions. The Office of the Ombudsman will also work to bring about changes that will help prevent future problems for other student loan borrowers. The Ombudsman will informally research your problem and determine if you have been treated fairly. If your student loan complaint is justified, the Office of the Ombudsman will work with you and the office, agency, or company involved in the problem. On your behalf, the Office will contact: • Other offices within the U.S. Department of Education, • Your private lender (banks, credit unions, savings and loan association, and others), • Your loan guaranty agency, and • The servicing agency or firm collecting your loan. If your complaint is not justified, they will take the time to explain how they came to this conclusion. The Ombudsman is not an advocate or someone who will automatically take your side in a complaint. The Office of the Ombudsman must consider all sides in an impartial and objective way. Often, the process of finding all the facts of a complaint and explaining that information to all the parties involved leads to the development of reasonable and fair solutions. It is the Ombudsman’s job to help develop fair solutions to complex and difficult problems. If you need the assistance of the Ombudsman in order to resolve disputes or problems, contact the office at the address, phone number, or email address listed below: U.S. Department of Education FSA Ombudsman 830 First Street, NE Washington, DC 20202-5144 (202) 377-3800 toll free: (877) 557-2575 via fax: (202) 275-0549 via e-mail: fsaombudsmanoffice@ed.gov Visit the Ombudsman website at: http://www.ombudsman.ed.gov 11

Unlike the Federal Perkins Loan program, which provides for a six-month grace period following each period of statutory deferment, there are no postdeferment grace periods for Federal Direct Stafford Loans. More specific information about repayment and deferments is included in the loan promissory note and the loan disclosure statement provided to student borrowers.

financial PaymenT Plan
Several private organizations offer a variety of financing options (such as monthly payment plans and long-term loans) to assist students and families in meeting college expenses. Information describing these programs is available on the Caltech Financial Aid home page at www.finaid.caltech.edu or upon request from the Caltech Financial Aid Office.

resPonsibiliTies
3 You have the responsibility to report changes in your financial status. Additional funds or benefits, from any source (such as a job or an outside scholarship) that you receive or are promised, before or after you are awarded financial aid from Caltech, must be reported. The Financial Aid Office is required by law to make adjustments to prevent or correct overawards. You will save yourself frustration and inconvenience and possible financial penalty by reporting any changes in your financial status promptly. 3 You have the responsibility to report any change in your student status immediately. If you move, change your name, drop below fulltime status, withdraw from school, or do anything else that affects your financial situation, please report that information to the Financial Aid Office and any student loan lender. If you plan to take an academic leave or a student sabbatical, please let us know in advance.

yoUr riGhTs and resPonsibiliTies as a financial aid reciPienT
riGhTs
3 You have the right to have your eligibility for financial aid determined in a manner that is consistent and impartial for all applicants. 3 You have the right to privacy. All records and data submitted with your application for financial aid will be treated as confidential information subject to legal requirements concerning disclosure of such information. 3 You have the right to a complete explanation of the award process. If you do not understand your financial aid award, or feel your application has not been evaluated fairly, please contact us. 3 You have the right to be notified of cancellation or withdrawal of aid and to be told why this action is being taken. 3 You have the right to appeal. An administrative appeal process has been established to review student requests for reconsideration. Should you wish to appeal your award, contact the Financial Aid Office and request to speak to a member of the professional staff. After speaking with a staff member, we will ask you to submit a letter of appeal along with supporting documents to the Financial Aid Office. 3 You have the right to apply for emergency or short-term loan assistance if you encounter an emergency or unexpected expense.

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Let us know when you plan to return. Complete a “Leave of Absence” form for a Cal Grant, when applicable. Without approval of this form, the California Student Aid Commission may cancel your Cal Grant. Inform your lender in writing, and keep a copy of your letter. Notify outside agencies (e.g. the National Merit Scholarship Corporation) which have provided your aid. Some of these agencies have special requirements for students on sabbatical or leave.

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3 You have the responsibility to use financial aid funds only for educationally-related expenses such as tuition and fees, books, supplies, and living costs. 12

3 You have the responsibility to report on your federal tax return any amount of your grants and scholarships that exceeds tuition, fees, books and supplies. 3 You have the responsibility to respond to requests and inquiries from federal, state, and college auditors. 3 You have the responsibility to keep copies of all correspondence regarding your financial aid, whether it is with the Financial Aid Office, governmental agencies, or outside lenders. 3 You have the responsibility to repay loans on time. Unless you do, loan funds will not be available for other students.

ParT-Time enrollmenT (Underloads)
As described in the Caltech Catalog, academic underloads (carrying less than 36 units) must be approved by the Registrar or Undergraduate Academic Standards and Honors Committee. Students enrolled half-time (taking 18 to 26 units) may be expected to work additional hours during the academic year, as well as to accept a reduction in the tuition, books and supplies allowance of their college expense budget. All students planning to carry an underload (less than 36 units) should contact the Financial Aid Office before Add Day.

saTisfacTory academic ProGress
In order to continue to receive financial aid at Caltech, students must maintain satisfactory academic progress toward completion of the baccalaureate degree as defined in the Caltech Catalog. Whenever this is not maintained, approval for reinstatement by the Undergraduate Academic Standards and Honors Committee, the Registrar, or the Dean of Undergraduate Students (as described in the Caltech Catalog) shall usually reestablish satisfactory progress for purposes of financial aid eligibility. In general, assistance is available to eligible students for the first 12 terms of enrollment (or the equivalent for transfer or less-than-full-time students). Exceptions may be approved after submission of a petition to the Financial Aid Office. Petition forms are available in the Financial Aid Office.

refUnd and rePaymenT Policy
Caltech has established an equitable refund policy for students who find it necessary to withdraw from the Institute. Students who withdraw from the Institute during an academic term will receive a tuition refund based on the schedule published in the Caltech Catalog. Students living in Caltech housing may also be eligible for a partial refund from the Housing Office. When issuing refunds to financial aid recipients, it is Caltech’s policy to reduce the aid award by the amount of the refund. Therefore, an aid recipient’s refund is, in most cases, returned to the original aid account. An overpayment or overaward occurs when a student receives more aid than he or she is eligible to receive. Therefore, the Financial Aid Office will compare actual aid eligibility to aid disbursed in accordance with federal guidelines. If aid disbursed exceeds aid eligibility, the student may be responsible for the overpayment. Overpayments will usually be charged to the student on his or her student account. If a student receives federal student financial aid funds as a cash disbursement to cover living expenses, a repayment may be required. Additional information about this refund and repayment policy is described in the Caltech Catalog.

class level
For financial aid purposes, undergraduate students are classified according to the number of units earned and the number of terms of residence at Caltech. Both these criteria must be satisfied for class level eligibility. Students are regarded as freshmen until eligible for sophomore status, and as sophomores, juniors, or seniors, if they meet the corresponding criteria set below. Units earned are defined as units completed with a passing grade. Classification Sophomore Junior Senior Minimum Units Earned 108 216 324 Minimum in Residence 3 6 9 13

We are available via email or appointments. If you have any questions and/or concerns about your financial aid, please contact our office.

checklisT
Don’t let an oversight delay your financial aid. Before returning your award letter, please use this checklist. 3 Read your financial aid award letter carefully. 3 Check for accuracy in your name and Caltech UID number. Correct any errors or attach a note calling the problem to our attention. 3 If you have been awarded a Cal Grant by the California Student Aid Commission (CSAC), but it is not listed on your Financial Aid Award letter, send us a copy of your award announcement from CSAC. 3 If a Cal Grant is listed on your Financial Aid Award letter, and you learn that you will not be receiving a Cal Grant or that your Cal Grant has been adjusted, send us a copy of your announcement as soon as you receive it from the CSAC. 3 Check “accept” or “decline” for each type of aid awarded. 3 Remember to list any outside resources, such as the names and amounts of any outside scholarships awarded for 2006-2007 that we have not listed on your award letter, on the “Resource” line above your signature. 3 Return your signed award letter as soon as possible to the Financial Aid Office, even if you will be requesting a revision to your award. 3 Retain the student copy of the award letter for your records.

Policy of Nondiscrimination The California Institute of Technology is committed to the concept of equal educational opportunity for all. Individuals are considered for admission to student status, and all services, facilities, programs, and activities are administered in a nondiscriminatory manner without regard to (a) race, religion, color, sex, sexual orientation, parental or family or marital status, national or ethnic origin, or nondisqualifying handicap; or (b) any other factor which is, in fact, irrelevant to student status or to the rendering of services, facilities, programs, or activities. In addition, the many Federal and State laws, and regulations issued thereunder, which bar discrimination in educational programs and related activities, are also applicable. This brochure describes the programs, policies, and procedures in effect at the time of printing, all of which are subject to change without prior notice. While Caltech believes that the information contained herein is correct and factual, this document has not been reviewed or approved by the U.S. Department of Education or the California Student Aid Commission. December, 2005